Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The table presents sets of statements linked to the Keynesian and Monetarist schools of thought. Which set is correct?

  • AKeynesian: crowding out effect prevents private sector investment / Monetarist: controlling the money supply controls inflation
  • BKeynesian: fiscal policy is best for economic growth / Monetarist: wages are flexible
  • CKeynesian: reducing inflation is more important than reducing unemployment / Monetarist: reducing unemployment is more important that reducing inflation
  • DKeynesian: wages are sticky downwards / Monetarist: controlling aggregate demand controls inflation

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